The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-09-03
Mysterious Movements Of the SiocS
MARKET Explained.
The sale or the Baltimore aud ohio
Railroad at Last announced.
The SJstcm Purchased Throaga
Drsxel, Morgan 4 Co.
The sleeping Car, Express and ipac-
graphic Franchises win ne
Sold 80 Independent
Partief.


that some important developments
we're longing over II q railroad aud tei-
egTaph world, sere explained ~ facts
which we're made pubic late this aft
enOun. After breaking of his nego-
tiatons with Ives Il 90 Mr.. d!rreA
went 10 London, whore the ucgotia-
tlona w,rs continued with j. s. Nor.
,ar, snd to-day n deal was announced
comparable In importance with Ehs
West Shore settlement with the New
York Central md the forming OF ,hs
Reading syndicate to reorgapiz1 sss
company. Both Of these dealir X were
carried through by Drexel, Morgan
4 %, but In the latter csss Edward
Lauterbach was the most pTOmiug nt
figure as mediator between the
Gowen and Drexel interests, aud in
the agreement now made he also tskes
a prominent place. The contamination
Of the contract made today Was held
In allegiance until his opinion was oh
tanned on the question OF whether tia
and Ohio railroad covered the telegraph
system OF the company. After study
Ing the question In sl its aspects, no
deci led that the telegraph lines were
free from all liens, and on receiving
this opinion, the agreement, in the ma
tlre a a preliminary contract, was
executed today. The parties TO the
cOutrart are the Baltimore and Ohio
Railroad Company and q syndicate
composed OF ]. y. Morgan & Co, Bar
ing BfoP.' 4 Co, Brown, Shiploy L
90, of London; Drxel, Morgan Go,
Kidddl, Peabody & 90, and Brown,
Bro. o x Co., Of this city, and Drexei 4
%, OF Philsdelphia. The most I'M
portant point in the contract PFC yides
that the manage ment oi the company
shall he placed In competent bar Dc
satisfactory 10 the syndicate. Who
the men are who will be satisfactory
10 the syndicate cannot be afcer-
tanned, hut A. j. Coesett, the vice
president Il the Pennsylvania Kali
road Company, Ia generally believed
10 be booked an ar. CARROTS success
cor. Satisfactory contracts are
|
Pennsylvania and Reading rsilroa d.
on all business north Of Philadelphia,
and with all other trunk lines enter.
ing New York, by which all aniagon
: ism will be removed, and Insure tho
, permanent working OF Baltimore and
Ohio IN harmony with the other truht
lines. In addition 90 the contracts,
the lines In process Of construction
from Philadelphia 10 New York will
be Suspended In their construction
juat M they now stand and the work
on Staten Island stopped. In oonsid-
Grafton OF these contracts being sigutd,
and with tho control In their hands,
the syndicate agree b relieve the rail-
road from Ne present embarrassment
by providing tl0,OOO.C00 with which
10 take mp the floating debt. lis
will be Represented by 5000, 900 in
Baltimore and Ohio consolidated 1ves.
Rud tbOOO,OOO preferred stock. Tire
floating debt No II ttands amounts o
81 ,OOO. 900, moatly In the shape OF g.r
'ifcates Of Indebtedness, tcrip I'D
notes. OF this amount ti,00O0CO Is
eaid 10 have ma.rred on the LIST In
slant. One Of ihe parties to the syn.
dcito authorized the following
ttaisment 40 the outcome Of
the contract: THE position Of
. the Baltimore and ONO railroad
: 40 an ishmaelite In the railroad sleep.
) Ing car, express and Telegraph busi.
: ness IL given up, AL the outside
: enterprises will DO sold 10 parties 10
whom they will be valuable. The
, Western Union will control, II u does
not bay the telegraph lines, aud the
Pullman Palace Oar Company will
taks the sleeping car business. The
eIpIeso business has already gone to
the Unit 4 States Express Company.
The afalr5 OF the railroad company
will be entirely Teorgan'Esd and plact 4
upon a sound financial bAsie."
Dp1sl, Morgan 4 %. were In cor,
reepoldenoe All day with their house
In London and Philadelphia, and lat
In tho evening confirmed the state
men,s that the contracts and negot!a
: tiona given above bad been jus
I signed. Ouiside OF the facts given
above they declined 10 speak. The
olanse oi the contracts suspendipg all
work on ihs extension from Phila-
, delphiA % Now York Ia believed 10 DO
the keynote OF the syndica.s's Interest
In the negotiations, aud Ii construed
20 mean that the Baltimore and OHIO
railroad, when Invested OF all Oxtfa.
nsous enterprise, viii be operated
practically by the Penney lVsnia rail-.
road. The following has peen lslued
by tho drm Of Dfexcl, Morgan 4 Co (:
! A preliminary contract la, been *
, ecutsd today between the Baltimore
snd Ohio Railroad Company, Barring
Bros n 90. and Brown, sninlcJ & 20 /,
. London, and their allied houss on
ih. side. ThIl contract provides Tor
} the negotiation OF $1,000 900 Of Balll.
q more aud Ohio consolidated hyeG aud
: s.. 900 900 Of Baltimore aud Ohio pre-.
i0ffod stock, for the purpose Of paying
Oh the eniiIo floating debt II me
. company and placing Il on q sound
6nanclal ba'is. The conditions are as
follow; FiBt-Ths veH6cat.5n Of
, statements, etc, 90 made. secoud-
That tie managomcnto OF tbs company
shaii be placed IN csmnsient hands,
! sai.siactofy 10 the syndicate. Third
That satisfactory contracts eball DO
msda between the Baltimore ard Ohio
snd the other roads Tor New York
business which aha remove I'll lniig-
onism between Them on the subject
and insure the permanent working oil
tho Baltimore and Ohio IN entire bar.
mony with tho Cthsr uunk liroa; and
also avoid construction W threat OF
. construction u expensive parallel
lines north aad east OF Philadelphia"
The houses Interested on this aide
arr Drxsl, Morgan a o.; Dfexel \
o., Brown Bros and Kidder, Pea.
body a 90.
LONDON. Queen directs that